Ringgit will be under pressure against US$ in near term

KUALA LUMPUR: The ringgit will remain under pressure against the US dollar as the rate gap widens, while the United States’ (US) federal funds rate will be higher than the overnight policy rate (OPR) by next week, said Bank Islam Malaysia Bhd chief economist Firdaos Rosli.

He said the market is reacting to the latest US Consumer Price Index (CPI) data which showed that the country’s inflation remains high, despite the lower oil prices in August 2022 and the aggressive rate hikes by the US Federal Reserve (Fed) over the past months.